Credit Card Limit

silverfox50

Hi all
Halifax have infomed me that they are increasing my credit card limit. I dont have to do anything if I am happy with it (which I am) but they will do some final checks to make sure it is right for my needs. Will that be a credit score search?

MyRealNameToo

silverfox50 said:

Hi all
Halifax have infomed me that they are increasing my credit card limit. I dont have to do anything if I am happy with it (which I am) but they will do some final checks to make sure it is right for my needs. Will that be a credit score search?

Not normally, checks are done before they make the offer. 

MattMattMattUK

silverfox50 said:

Hi all
Halifax have infomed me that they are increasing my credit card limit. I dont have to do anything if I am happy with it (which I am) but they will do some final checks to make sure it is right for my needs. Will that be a credit score search?

They normally do a soft search before it going through, which is a basic check for affordability and anything untoward.

CliveOfIndia

No, they'll have offered you the increase based upon information they already hold on you as an existing customer, including the way you've managed your account in the past.

It might or might not affect your score, but that's totally irrelevant since it's a meaningless marketing gimmick.  If anything, it'll reduce your utilisation ratio - which is also totally irrelevant if you always pay in full every month.  But it'll keep the CRAs happy, not that their opinion counts for toffee.

Just remember - you don't need to start using all of your increased limit!  The golden rule still applies - only ever spend what you can genuinely afford, and what you know you'll be able to repay in full every month.

silverfox50

thanks all-just to clarify is CRA Credit Reference Agency ?

CliveOfIndia

silverfox50 said:

thanks all-just to clarify is CRA Credit Reference Agency ?

Correct.  There are three in the UK - Equifax, Experian and TransUnion.  Different lenders will use a different CRA as their preferred source of data (some may use more than one), but all 3 hold essentially the same data about you, and the data is - or, at least, should be - consistent across all 3.